MD_DA830                                                         
DA                                                               
MD DA830 Cheese - Midwest                                        

MADISON, WI.  September 28, 2016 (REPORT 39)                     

MIDWEST CHEESE:                                                  

Midwest cheese production is steady. Milk intakes are relatively balanced and many 
manufacturers are running near full production schedules. A few processors are looking 
for additional loads of milk to round out production, but spot loads are a little less 
available for discounted prices. Retail and food service cheese orders are strong and 
have been building a little into the end of the year. All varieties of natural cheese 
have good demand. The DMN National Retail Report-Dairy shows that September 23-29 Midwest 
ads for 8 ounce shred cheese have a weighted average advertised price of $1.78, 38 cents 
lower than the national average. Midwest prices range from $1.48-$1.99. One year ago, the 
national price was $2.45. For 8 ounce blocks, the Midwest average price is $1.90, 28 
cents below the national average price. Midwest ads are priced from $1.48-$2.50. Last 
year, the national price was $2.39. Midwestern wholesale prices are unchanged for Swiss 
cuts, down $.0275 for process, and down $.0825 for all other types. This week, a 
cooperative export assistance program accepted 32 requests for 5.99 million pounds (2,717 
metric tons) of cheese. So far this year, the program has assisted member cooperatives 
who have contracts to sell 38.1 million pounds of cheese in export markets. According to 
the NASS Cold Storage report, U.S. stocks of cheese (total natural) at the end of August 
2016 were 1.243 billion pounds, down 3% from July 2016, but up 6% from August 2015. 
American stocks were 5% more, other natural stocks were 8% more, and Swiss stocks were up 
17% compared to last year. In the East North Central region (Wisconsin, Illinois, 
Michigan, Indiana and Ohio) American cheese stocks at the end of August 2016, were 6% 
higher than last year, but 2% below last month. Other cheese stocks in the East North 
Central region were 5% higher than August 30, 2015, but 1% below July 31, 2016. In CME 
Group trading Wednesday, barrels closed at $1.4800, down $.0300 from last Wednesday and 
blocks closed at $1.5375, down $.0475. 

WISCONSIN WHOLESALE SELLING PRICES:  DELIVERED,                  
DOLLARS PER POUND (1000 - 5000 POUNDS MIXED LOTS)                
                                                                 
Process American 5# Loaf                   : 1.5950-1.9550       
Brick And/Or Muenster 5#                   : 1.9475-2.3725       
Cheddar 40# Block                          : 1.6750-2.0700       
Monterey Jack 10#                          : 1.9225-2.1275       
Blue 5#                                    : 2.2150-3.2025       
Mozzarella 5 - 6# (Low Moisture, Part Skim): 1.7475-2.6875       
Grade A Swiss Cuts 6 - 9#                  : 2.4350-2.5525       


1300CT mike.bandli@ams.usda.gov(608)557-7010
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home-